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(M. Amebari Nongsiej) - Sector of Indian Economy (Economics)
(M. Amebari Nongsiej) - Sector of Indian Economy (Economics)
What is an economy?
Ans: A framework within which all the economic activities of a country can be largely described is
called the economy. [386]
Give one reason for the rapid growth of service sector in India.
Ans: One reason for the rapid growth of service sector in India is:-
(1) The service sector employs many different kinds of people like small shopkeepers, repair
persons, transport persons, etc. it also employs highly skilled and educated workers. [389]
Name the sector which forms the base for all other products.
Ans: Primary sector is the sector which forms the base for all other products. [387]
Name the sector which helps in the development of the primary and secondary sectors.
Ans: Tertiary or service sector is the sector which helps in the development of the primary and
secondary sectors. [387]
Name the sector in which natural products are changed into other forms.
Ans: Secondary sector is the sector in which natural products are changed into other forms. [387]
On the other hand, unorganised sector includes activities of people where no rules and
regulations are followed. Landless agricultural labourers, small and marginal farmers, workers in
small industries, street vendors, rag pickers etc. fall under the category of unorganised sector. [391]
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What do you mean by disguised unemployment?
Ans: When people are apparently working but they are made to work less than their potential, it is
called disguised unemployment. [389]
Workers in the unorganised sector need protection on the issues like wages, safety and
health. Explain with examples.
Ans: Workers in the unorganised sector indeed need protection on the issues like wages, safety and
health. For example, workers in this sector do not have any job security; they are not paid fair wages;
they are often exploited by their employers; their earnings are not regular and they have no other
benefits. If they fail to go to work, no wage is paid to them for that day. Moreover, they also face social
discrimination. Workers belonging to the scheduled castes, scheduled tribes and backward
communities in the unorganised sector are excluded people and are not allowed to live in better
surroundings with better off people. [391]
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farmers, workers in small industries, street vendors, rag pickers etc. fall under the category of
unorganised sector. [391 & 392]
How are the economic activities classified into primary, secondary and tertiary sectors?
Ans: On the basis of economic activities, the economy is classified into the following sectors:-
(1) Primary Sector: This sector includes activities relating to land like agriculture and allied
activities such as forestry, dairying, fishing, poultry farming, mining, stone quarrying etc. In
this sector goods are produced by exploiting natural recourses. For example, in the cultivation
of wheat, we depend on natural factors like rainfall, sunshine and climate. Similarly, in case of
dairying we depend on the biological process of animals and availability of fodder.
(2) Secondary Sector: This sector includes activities relating to manufacturing and construction. In
this sector, one type of product is converted into another. For example, manufacture of cotton
yarn by using cotton fibre, use of sugarcane for making sugar, and use of bricks to make houses
and buildings, etc.
(3) Tertiary Sector: This sector provides services like transportation of goods, storage of goods,
banking and insurance, etc. These services are needed by households and primary and
secondary sectors. This sector also includes essential services provided by teachers, doctors,
and personal services provided by washerman, barbers, cobblers, lawyers, etc. In recent times,
new services based on information technology such as cyber cafe, ATM booths, call centres,
software companies, etc. have become important. [387-388]
Ame/
Explain the relative importance of primary sector, secondary sector and tertiary sector in
(a) GDP and (b) employment.
Ans: (a) GDP: The relative importance of primary, secondary and tertiary sectors based on
contribution to GDP is explained under:-
As the economy develops the relative importance of the three sectors in the economy changes.
In the initial stages of development, primary activities remain most important activities of the
economy. However, with the passage of time and development, secondary sector becomes most
important in terms of total production and employment. But, in the final stage of development, the
service sector becomes most important in terms of total production. [388]
(b) Employment: The relative importance of primary, secondary and tertiary sectors based on
employment is explained under:-
Though there has been a change in the share of the three sector in GDP, yet a similar change
has not taken place in terms of employment. There is no shift out of primary sector in cause of
employment. This is because enough jobs were not created in the secondary and tertiary sectors. Even
though industrial production went up by more than 9 times during the period 2011-12, employment in
the industry went up by around three times. Similarly, though production in the service sector rose by
14 times, employment rose around five times. This means that there are more people employed in
agriculture than actually needed. [389]
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